Life and Health Insurance Missouri
The Employer
If a business wants to buy a disability income policy on a key employee, which of the following is considered the applicant?
When an insurer's underwriter approves coverage
In forming an insurance contract, when does acceptance usually occur?
The completed application is submitted
In insurance, an offer is usually made when
Credit life insurance can be issued as
Individual or group term plan
On a class basis only
On a guaranteed renewable health insurance policy, the insurer may increase premiums
During the open enrollment period
Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)?
Funds exceeding the premium paid are taxable as ordinary income.
TRUE about the cash surrender nonforfeiture option?
Credit life insurance is usually issued as what type of policies
Term Life
provide broader coverage than a policy that uses the accidental means definition
A policy that uses the accidental bodily injury definition will
Subrogation
A provision found in insurance policies which prevents the insured from collecting twice for the same loss is called
Aplicant
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
Consideration Clause.
An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the
Regulates Consumer Reports, also known as consumer investigative reports, or credit reports.
The Federal Fair Credit Reporting Act
The policy application must contain a notice of
The Graded Death Benefit
Circumstance where an insurer would pay accelerated death benefits
An insured is diagnosed with cancer and needs help paying for medical treatment
The insured may renew for another 10 years but at a higher premium rate
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
non-taxed return of unused premiums
Dividends
A capital amount in a lump sum
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
How often must an insurer who delivers variable life insurance policies in variable death benefits
Annually
Insurers that issue individual variable contracts in this state are required to mail policy owners a statement of the investments, How often?
Annually
No insurance policy form can be issued, delivered, or used in the state unless it has been
Approved by the Department of Insurance
How many hours of inpatient care must be provided to a mother after a delivery by caesarian section
At least 96 hours
15-day waiting period / 10-year benefit period
Which of the following disability income policies would have the highest premium?
employers with 20 or more employees to continue group medical insurance for terminated workers and dependents for up to 18 months to 36 months. The employee can be required to pay up to 102% of the coverage's premium.
COBRA requires
An insurer cannot transact business until it obtains
Certificate of Authority
The employer is the owner and the beneficiary
Who is the owner and who is the beneficiary in a key person life insurance policy
Insures the life of a debtor
Credit Insurance
What is true regarding the insurance amount in a credit life policy
Creditor can only insure the debtor for the amount owed
What is the time limit to contest life insurance policies in Missouri
2 years
How long must insurance transaction records be kept
3 years
Maximum policy loan interest rate in Missouri
8%
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2,500
Which of the following is the closets term to a an authorized insurer
Admitted
Respite Care, Adult Day Care, Home health care, Custodial Care
All of the following long term care coverages would allow an insured to receive care at home
30 days
How long is the free look period on a medicare supplement policy?
The purpose of a managed health care insurance plan is to
To control health insurance claims expenses
Relief for a major care giver
What type of care is Respite Care?
Legal Actions
provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
Monthly
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
Unlimited
Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
90 days
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
Grace period of 31 days, Incontestability of 2 years, A copy of the application must be attached to the policy
Group life insurance policies in this state must contain all of the following provisions
A medicare supplement plan must have at least which of the following provisions
Guaranteed Renewable
Usual, customary and reasonable.
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
What is the purpose of the insurability provision in group life policies
Allow the insurer to require proof of insurability of individual insured
WIthin 90 days or as soon as reasonably possible
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
If the insured lives to age 100
How will the insured be able to receive the full amount of their whole life policy?
During which illness-related disabilities are excluded from coverage.
In a disability policy, the probationary period refers to the time
Limitations, benefits, and exclusions
In a replacement situation all of the following must be considered
10%
Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?
Alzheimer's Disease
Long-term care policies MUST cover
It occurs in during the probationary period
Loss by illness is not covered if
Certificate of Insurance, Misstatement of Age, Claims Provisions; including proof of loss
Mandatory provisions for group health policies in the state of Missouri
Dependents
Most policies include coverage for
The Missouri Life and Health Insurance Guaranty association was created to protect.
Policy owners, Insureds, and beneficiaries
When an agent collects the initial premium from the applicant the agent should issue the applicant a
Premium Reciept
Statement that the death benefit is variable or fixed Statement that cash values may increase or decrease based of the separate account Questioned designed to assist the insurer in determining suitability of insurance
Required on an application for variable life insurance policy
Will pay an amount to make up the difference for what the insured would have made before the loss
Residual Disability
In an institutional setting
Skilled care is almost always
Specified dollar amount beyond which the insured no longer participates
Stop-loss Limit
When does credit life insurance take into effect
The date the debtor becomes obligated to the creditor
Annually Renewable Term
The death protection component of Universal Life Insurance is always
The identity of the insurance company and the insured, The types of losses covered, That insurance against loss is provided
The insuring clause on a disability policy usually states all of the following
Taxable
The interest earned on policy dividends is
To purchase a smaller amount of the same type of insurance as the original policy.
The paid-up addition option uses the dividend
The death benefit can be increased by providing evidence of insurability
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
Attained Age
The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's
A non qualified annuity plan
The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is
The Death Benefit
The term "fixed" in a fixed annuity does not refer to
Guaranteed rate of interest, Equal annuity payments, and amount and length of payments
The term "fixed" in a fixed annuity refers to all of the following
Premiums paid by self employed, sole proprietors, and partners for medical insurance are
Totally tax deductable
The Director
Variable life insurance policies as well as any riders, endorsements, and other documents attached to them must be approved by
It allows the insured to reject the policy with a full refund.
What is the purpose of a free-look period in insurance policies?
To allow the consumer to compare the costs of different policies
What is the purpose of the buyer's guide?
Application
What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
Benefits may be subject to deductibles and co-payments not greater to those applied to any other covered illness.
What is true of benefits provided in a health insurance policy for insureds that are diagnosed with diabetes
Interest only
When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?
Preferred Provider Organization (PPO)
When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called
When the expenses exceed a certain percentage of the insured's adjusted gross income
When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?
The surviving beneficiary receives 2/3 of what was received when both beneficiaries were alive
When the reduced option is written as "Joint and 2/3 Survivor"
It is level term insurance
Which of the following best describes annually renewable term insurance?
Both the principal and interest will be liquidated over a selected period of time.
Which of the following best describes fixed-period settlement option?
The insured is not required to pay a deductible
Which of the following best describes the "first-dollar coverage" principle in basic medical insurance?
Third-Party Ownership
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner?
Benefits are offered by the insured
Which of the following is NOT true regarding Workers Compensation?
The person may not be declined for medical coverage solely for HIV
Which of the following is true regarding health insurance underwriting for a person with HIV?
Universal Life Option A
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
The Fair Credit Reporting Act
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
Automatic premium loan
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
Option B
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Time of Payment of Claims
Which provision states that the Insurance company must pay Medical Expense immediately
2 years
Within what period of time are unintentional misrepresentations grounds for contestability